Plasma, a crypto start-up that builds a Bitcoin-based blockchain designed specifically for stablecoins, raised $ 20 million to promote its development, the company said on Thursday.
The fundraising round was led by framework conditions and will support Plasma’s test network and mainnet launches as well as its extension to transfers, payments and defi applications, the team says.
The investment followed a 4 million dollars with early backers, including BitFinex, StableCoin issuer Tether’s CEO Paolo Ardoino, venture capitalist Peter Thiel and prominent crypto -traders Cobie and Zaheer Ebtikar, also known as Split Capital.
Stableecoins have become a dominant force in crypto that surpasses $ 220 billion in supply, and is increasingly used for daily payments and savings. While Bitcoin is the longest-moving blockchain, most of the stableecoin activity happens on newer chains such as Ethereum, Tron and Solana.
Plasma is designed to be a SideChain on Bitcoin blockchain with full compatibility with Ethereum Virtual Machine (EVM), which supports a large part of decentralized financing activity. The team said they are aiming to tackle challenges faced by stableecoins about existing blockchains, such as high fees and scalability limits by utilizing Bitcoin’s security and offering zero fees USDT transactions.
“Stableecoins are the clear winner of Blockchain Reconstruction, yet they are treated as second-class citizens at current blockchains,” Paul Faecks, founder and CEO of Plasma, said in a statement. “By utilizing Bitcoin as a foundation, zero fees are transferred with a custom-built ecosystem and infrastructure for deep liquidity stableecoins, plasma creates the most secure, scalable and effective blockchain for stablecoins on the market.”
